Australia’s opposition is urging the Albanese government to actively intervene as BHP faces a reported freeze on iron ore shipments to China following stalled price negotiations.
Opposition finance spokesman James Paterson criticized the government’s “hands-off” approach, arguing that Australia cannot leave its largest miner to face state-influenced Chinese entities alone.
“Iron ore is Australia’s largest export and a critical contributor to the federal budget,” Paterson told Sky News. “If China is attempting to leverage pricing to push below competitive international levels, it threatens not just BHP, but the entire Australian economy.”
Paterson highlighted that the Chinese counterparties are state-owned or heavily government-influenced, unlike free-market companies in Australia, and stressed that the government must use both diplomatic and economic tools to protect Australian interests. He also called for closer involvement of federal trade and finance ministries to ensure BHP is not unfairly disadvantaged.
Prime Minister Anthony Albanese has expressed concern over the stand-off and urged a swift resolution. However, the opposition contends that passive monitoring is insufficient, urging decisive action to ensure that Chinese state-run entities do not exploit Australia’s largest export sector.
Australia produces over 20% of the world’s iron ore, with exports projected at AUD 116 billion in 2024-25. China remains the primary market, although slowing demand in its construction sector has heightened the need for protective measures for Australian exporters.
